Hindenburg research slams Aphria
On December 28, short seller Hindenburg Research released an update on Aphria’s (APHA) recent takeover bid from Green Growth Brands, calling it a “circus.” Hindenburg also called this takeover bid “merely an epic next step of Aphria’s brazen shell game” and views this latest development as “non-credible and likely an attempt to generate the appearance of demand in the hopes of spurring credible offers.”
Here are the highlights of that report.
- Green Growth Brand’s second-largest shareholder is connected to Aphria’s CEO, Vic Neufeld.
- Green Growth appeared to be a company with little revenue and tangible assets, which Hindenburg calls “worthless.”
- Green Growth’s board of directors includes members of Aphria’s board, which Hindenburg describes as having affiliations between the two companies.
As of 11:56 AM ET today, Aphria was trading nearly 11% higher on the NYSE while peers (MJ) Cronos Group (CRON), Aurora Cannabis (ACB), and Canopy Growth (WEED) were still trading in negative territory.